26th Jan 2007 08:30
Lonrho Africa PLC26 January 2007 FOR IMMEDIATE RELEASE Lonrho Africa plc ("Lonrho") LUBA FREEPORT SELECTS DANISH GROUP AS PREFERRED BIDDER FOR QUAY EXTENSION PROJECT Lonrho is pleased to announce that Luba Freeport Ltd ("Luba"), Lonrho's 63%subsidiary, has selected Danish marine infrastructure specialists, E. Pihl & SonA.S. ("Pihl") as Preferred Bidder for the port's Phase 1 quay extension workfollowing a competitive tender. Luba and Pihl are in the process of finalisingthe terms and conditions of the contract. If appointed, Pihl will provide a complete turnkey solution for the creation ofthe first 70m of quay at Luba, which will almost double the existing handlingcapacity at the port. The Phase 1 expansion project is expected to be completedby the end of the year. Pihl is a privately owned company with an unparalleledglobal reputation for quality and excellence spanning back to 1887. It hasoperated in Equatorial Guinea for 5 years and offers significant costefficiencies for Luba due to its availability of equipment and skilled labour.Pihl and its subsidiaries have completed large-scale global marineinfrastructure assignments including ports, harbours, bridges and tunnels, incountries such as Lebanon, Norway, Jamaica, Greenland, Poland, Namibia andEquatorial Guinea. David Lenigas, Joint Executive Chairman and Chief Executive of Lonrho,commented: "Business in the Gulf of Guinea is increasing with ship movements up 45% year onyear and we are therefore delighted that we have been able to select a PreferredBidder for the implementation of our Phase 1 expansion plans at Luba accordingto schedule. Pihl is a first class international contractor for marinefacilities and we look forward to benefiting from both its pedigree andexpertise in Equatorial Guinea." Over the course of the past twelve months Baker Hughes, one of Luba's largestclients, has completed a 10,000 square metre facility comprising warehousing,offices, workshops and a bulking facility. Baker Hughes is already looking toadd an additional 5,000 square metres of open storage adjacent to their presentfacility. Currently, Luba is improving accommodation, catering and laundryfacilities which are being provided at its base camp for 28 expatriate BakerHughes' personnel. Luba is also making swift progress in the construction of a 60,000 square metrelogistics facility for Mobil Equatorial Guinea Inc. ("MEGI"), part ofExxonMobil. Construction of this facility is expected to be completed by 30 June2007. This will increase the usage of the site by MEGI, whose contract tookeffect on 15 November 2006 for an initial period of nine years with three,one-yearly extension options. The estimated value of the contract amounts tomore than US$35 million over the remaining initial period. Within the next 12 months, Luba is expected to complete an additional 1,000square metres of warehousing, locker and shower rooms for MI Fluid. Thewarehouse will be used for the storage of palletised chemicals as MI Fluid'spresent warehouse is unable to cope with the increasing demand for drillingchemicals in the Gulf of Guinea. MI Fluid will also build additional tanks forthe storage and distribution of bulk chemicals. Schlumberger has also requested the construction of additional bulk storage padson their current facility at Luba. It intends to install two additional bulkingtanks for the pumping of chemicals across the quayside for distributionthroughout West Africa. "The successful completion of Phase 1 remains our priority, the cost of which isapproximately US$10.3 million," said Mr. Lenigas. "The Netherlands DevelopmentFinance Company ("FMO") is no longer engaged to provide debt financing. Lubawill instead source alternative project financing over future phases of thedevelopment of the port's facilities." -END- For further information, please contact: Lonrho Africa Plc +44 (0)20 7016 5100David LenigasEmma Priestley Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja VetterEden MendelEmma Consett NOTES TO EDITORS Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the naturalresources, infrastructure, leisure and agribusiness sectors. Lonrho's executiveteam has considerable experience across these industries in a wide range ofcountries. Last year, the Company announced investments in Brinkley Mining Plc,Nare Diamonds Ltd, Five Forty Aviation Limited and Norse Air Limited. In May 2006, Lonrho also announced its acquisition of 63% of the issued sharecapital of Luba Freeport in Equatorial Guinea. The port acts as a logisticscentre for the oil and gas industries in the Gulf of Guinea and services majoroil companies in the region. Its Tax Free status and central geographicallocation make it a unique choice for a West African regional hub. Lonrho hasagreed with the Government of Equatorial Guinea to maintain the overalldevelopment programme for the Port facilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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